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UAE end-of-service gratuity calculator (estimate)

This free calculator gives an estimate of the end-of-service gratuity (end-of-service benefits) of a foreign, full-time worker in the UAE private sector under Federal Decree-Law No. 33 of 2021, Article 51. It uses the basic wage only: no gratuity under 1 year (365 days) of continuous service; 21 days of wage for each of the first 5 years and 30 days for each later year; part years pro-rata; total capped at two years' wage (24 months). The law does not state how to turn a monthly wage into a daily wage; the calculator applies Article 67, which says the month represents 30 days and the year 365 days, so daily wage = monthly basic / 30 and service years = service days / 365. It is an estimate, not an official MOHRE figure and not approved by any authority.

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Who this calculator is for

Decree-Law 33/2021 applies to all establishments, employers and workers in the UAE private sector (Art. 3(1)). This calculator is for a full-time foreign worker in that sector. It is not for:

  • UAE nationals: their end of service follows the pension and social security legislation (Art. 51(1)).
  • Government and local-government employees, armed forces, police and security staff, and domestic workers: excluded from the Decree-Law (Art. 3(2)).
  • DIFC: employees there are under the DIFC Employment Law (Law No. 2 of 2019). From the Qualifying Scheme start date, DIFC employers contribute to a qualifying savings scheme (DEWS), and a gratuity is owed only for service before that date (Art. 66).
  • ADGM: the UAE Labour Law does not apply in ADGM; the ADGM Employment Regulations 2024 apply (section 61 on gratuity). A worker employed by an Abu Dhabi licensed entity outside ADGM is under the federal law.
  • Other free zones: the UAE Government Portal says free zone workers are generally governed by their own free zone authority's rules, so check the authority concerned.

Method used

  • Wage basis: the last monthly basic wage only. Allowances and benefits in kind are not included in the gratuity (Art. 51(2) and (5)).
  • Daily wage = basic / 30. The Decree-Law does not state the divisor; the calculator applies Art. 67 ("the month represents (30) thirty days"). Some employers use basic x 12 / 365 instead, which gives a daily wage about 1.4% lower.
  • Service years = qualifying service days / 365 (Art. 67: the year is 365 days). The last working day counts as a day of service, and unpaid absence days are taken off first.
  • Minimum: 1 year or more of continuous service, which the calculator reads as 365 qualifying days; under that, no gratuity (Art. 51(2)).
  • Days per year: 21 days of wage for each of the first 5 years (1,825 days), then 30 days for each year after that (Art. 51(2)). Part years are counted in proportion (Art. 51(3)).
  • Ceiling: 24 x monthly wage (Art. 51(6) "two years' wage"). Art. 1 defines Wage as the basic wage plus cash allowances and benefits in kind, so if you enter your total wage the ceiling uses it; without it, the ceiling uses basic. On basic only, the ceiling is reached at 25.5 years of service (3.5 months for the first 5 years plus 1 month for each later year).
  • Unpaid absence: the days you enter are taken off the service days (Art. 51(4)).

What this calculator does not cover

The estimate applies nothing beyond the method above. These points are not calculated:

  • Reason for leaving: the result is the same whether the employee resigned or was terminated. Article 51 sets no reduction for resignation, and the calculator applies none.
  • Work pattern: part-time and job-sharing gratuity is scaled by contracted hours (Cabinet Resolution 1/2022, Art. 30) and temporary work under 1 year earns none. The calculator assumes a full-time contract.
  • Pay components: allowances, commission, overtime, notice pay and unused leave payout are not included.
  • Which absences are unpaid: the calculator removes only the days you enter and does not check them.
  • Alternative schemes: an employer enrolled in the Savings Scheme (Art. 51(8), Cabinet Resolution 96/2023) pays contributions instead for the enrolled period.
  • Deductions: the employer may deduct amounts due by law or by judgment, such as loans, overpayments or a court debt (Art. 51(7), Cabinet Resolution 1/2022, Art. 29). None is deducted here.
  • Salary changes: only the last basic wage you enter is used.

Estimate only. It is not an official MOHRE figure and is not approved by any authority.

Official sources

UAE gratuity calculator FAQ

How does this calculator work out UAE gratuity?

It takes your last monthly basic salary, converts it to a daily wage (basic / 30), counts service days from the start date to the last working day (that day included), turns them into years (days / 365), and applies 21 days of wage for each of the first 5 years and 30 days for each year after that (Federal Decree-Law 33/2021, Art. 51 and 67). Part years count pro-rata and the total is capped at two years' wage.

Which daily wage formula does it use?

Basic salary / 30. Federal Decree-Law 33/2021 does not state the divisor for a monthly wage; Article 67 says the month represents 30 days and the year 365 days, and the calculator applies that. Some employers divide the annual basic by 365 instead (basic x 12 / 365), which gives a daily wage about 1.4% lower. For example, with basic 6,000 AED and 1,095 days (3 years) of service the estimate is 12,600.00 AED, while the 12 / 365 basis would give 12,427.40 AED.

Is there a minimum period of service?

Yes. Article 51 gives gratuity to a worker who completed one year or more of continuous service. The calculator reads one year as 365 qualifying days (Art. 67), counting the last working day and after taking off unpaid absence days; with 364 days there is none.

Is there a maximum amount?

Yes. Article 51(6) says the total must not exceed two years' wage. The calculator applies 24 months of wage: of your total monthly wage if you enter it (Art. 1 defines Wage to include cash allowances and benefits in kind, so add the monthly value of, for example, housing the employer provides), otherwise of basic. On basic only it is reached at 25.5 years of service, and the result says so when the ceiling applies.

Does resigning or being terminated change the result?

Not in this calculator. Article 51 sets no reduction based on how the employment ended, and the calculator applies none, so the figure is the same either way.

Are allowances included, and does it apply to me?

Allowances are not part of the gratuity: it is calculated on the basic wage (Art. 51). They can only raise the ceiling if you enter your total wage. The calculator is for foreign full-time workers in the UAE private sector under Decree-Law 33/2021. UAE nationals, DIFC and ADGM employees, and some other free zone workers are under different rules.

Is the figure my final gratuity, and is my data saved?

It is an estimate based on the assumptions above, not an official MOHRE calculation and not a final settlement. The figures you enter are sent to WatheeqaHR only to run the calculation and are not saved, and no account is needed.

Calculate gratuity for your whole team

WatheeqaHR payroll uses this same calculation for every employee, with the service period, unpaid leave and a reviewable breakdown on each profile.

See WatheeqaHR payroll for the UAE

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